Toyota, established in 1937, saidit expects tobook a net profit for the currentfiscalyearof 50 billion yen, helped byinterestincomeanddividendfromaffiliates.
The council said it had taken the expected profitfrom the scheme into account in the budget for the current financial year, investing it in subsidised bus routes.
Analysts say Honda needs to phase out those generous incentives to meet a bullish goal of achieving an operating profit of 6% of sales for the currentyear, up from a paltry 2.9% of sales last year but still down from a high of 9.1% in 2002.